New Risk • Jul 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 9.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (9.3% average weekly change). Announcement • Jun 30
Guangzhou Haige Communications Group Incorporated Company to Report First Half, 2026 Results on Aug 25, 2026 Guangzhou Haige Communications Group Incorporated Company announced that they will report first half, 2026 results on Aug 25, 2026 Declared Dividend • May 18
Dividend of CN¥0.06 announced Dividend of CN¥0.06 is the same as last year. Ex-date: 21st May 2026 Payment date: 21st May 2026 Dividend yield will be 0.4%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Announcement • Mar 31
Guangzhou Haige Communications Group Incorporated Company to Report Q1, 2026 Results on Apr 25, 2026 Guangzhou Haige Communications Group Incorporated Company announced that they will report Q1, 2026 results on Apr 25, 2026 Reported Earnings • Mar 29
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: CN¥0.32 loss per share (down from CN¥0.02 profit in FY 2024). Revenue: CN¥4.39b (down 11% from FY 2024). Net loss: CN¥786.4m (down CN¥839.5m from profit in FY 2024). Revenue missed analyst estimates by 6.0%. Earnings per share (EPS) also missed analyst estimates. Revenue is forecast to grow 29% p.a. on average during the next 2 years, compared to a 29% growth forecast for the Communications industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 101 percentage points per year, which is a significant difference in performance. Announcement • Mar 28
Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 24, 2026 Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 24, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China New Risk • Jan 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Price Target Changed • Jan 10
Price target increased by 14% to CN¥15.90 Up from CN¥13.90, the current price target is an average from 3 analysts. New target price is 20% below last closing price of CN¥20.00. Stock is up 100% over the past year. The company is forecast to post a net loss per share of CN¥0.013 compared to earnings per share of CN¥0.02 last year. Announcement • Dec 31
Guangzhou Haige Communications Group Incorporated Company to Report Fiscal Year 2025 Results on Mar 28, 2026 Guangzhou Haige Communications Group Incorporated Company announced that they will report fiscal year 2025 results on Mar 28, 2026 Reported Earnings • Oct 30
Third quarter 2025 earnings released: CN¥0.074 loss per share (vs CN¥0.004 loss in 3Q 2024) Third quarter 2025 results: CN¥0.074 loss per share (further deteriorated from CN¥0.004 loss in 3Q 2024). Revenue: CN¥928.1m (down 21% from 3Q 2024). Net loss: CN¥177.7m (loss widened CN¥166.8m from 3Q 2024). Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Communications industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Sep 30
Guangzhou Haige Communications Group Incorporated Company to Report Q3, 2025 Results on Oct 30, 2025 Guangzhou Haige Communications Group Incorporated Company announced that they will report Q3, 2025 results on Oct 30, 2025 New Risk • Aug 27
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Price Target Changed • Aug 12
Price target increased by 13% to CN¥15.35 Up from CN¥13.57, the current price target is an average from 2 analysts. New target price is 12% above last closing price of CN¥13.72. Stock is up 43% over the past year. The company is forecast to post earnings per share of CN¥0.22 for next year compared to CN¥0.02 last year. Reported Earnings • Aug 11
Second quarter 2025 earnings released: CN¥0.016 loss per share (vs CN¥0.054 profit in 2Q 2024) Second quarter 2025 results: CN¥0.016 loss per share (down from CN¥0.054 profit in 2Q 2024). Revenue: CN¥1.19b (down 18% from 2Q 2024). Net loss: CN¥43.1m (down 128% from profit in 2Q 2024). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Jul 02
Guangzhou Haige Communications Group Incorporated Company to Report First Half, 2025 Results on Aug 09, 2025 Guangzhou Haige Communications Group Incorporated Company announced that they will report first half, 2025 results on Aug 09, 2025 Declared Dividend • May 25
Dividend reduced to CN¥0.06 Dividend of CN¥0.06 is 60% lower than last year. Ex-date: 30th May 2025 Payment date: 30th May 2025 Dividend yield will be 0.5%, which is lower than the industry average of 1.2%. Sustainability & Growth Dividend is not covered by earnings (288% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 220% to bring the payout ratio under control. EPS is expected to grow by 303% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Announcement • May 24
Guangzhou Haige Communications Group Incorporated Company Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2024, Payable on 30 May 2025 Guangzhou Haige Communications Group Incorporated Company announced 2024 final profit distribution plan to be implemented (A shares) as Cash dividend/10 shares (tax included): CNY 0.60000000. Record date: 29 May 2025, Ex-date: 30 May 2025, Payment date: 30 May 2025. Major Estimate Revision • May 06
Consensus revenue estimates decrease by 20%, EPS upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥7.88b to CN¥6.27b. EPS estimate increased from CN¥0.19 to CN¥0.22 per share. Net income forecast to grow 1,061% next year vs 38% growth forecast for Communications industry in China. Consensus price target down from CN¥14.76 to CN¥13.57. Share price was steady at CN¥10.38 over the past week. Price Target Changed • Apr 23
Price target increased by 7.5% to CN¥14.76 Up from CN¥13.72, the current price target is an average from 2 analysts. New target price is 38% above last closing price of CN¥10.68. Stock is down 5.0% over the past year. The company is forecast to post earnings per share of CN¥0.21 for next year compared to CN¥0.02 last year. Major Estimate Revision • Apr 04
Consensus EPS estimates fall by 46% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from CN¥0.391 to CN¥0.21 per share. Revenue forecast steady at CN¥8.28b. Net income forecast to grow 895% next year vs 57% growth forecast for Communications industry in China. Consensus price target of CN¥13.96 unchanged from last update. Share price was steady at CN¥11.27 over the past week. Announcement • Apr 01
Guangzhou Haige Communications Group Incorporated Company Proposes Final Cash Dividend for the Year 2024 Guangzhou Haige Communications Group Incorporated Company announced on 31 March 2025 the profit distribution proposal for the year 2024 as final cash dividend (tax included) of CNY 0.60000000 per 10 shares. Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.02 (down from CN¥0.30 in FY 2023). Revenue: CN¥4.92b (down 24% from FY 2023). Net income: CN¥53.1m (down 92% from FY 2023). Profit margin: 1.1% (down from 11% in FY 2023). Revenue missed analyst estimates by 26%. Earnings per share (EPS) also missed analyst estimates by 93%. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Mar 29
Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 25, 2025 Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 25, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Announcement • Dec 31
Guangzhou Haige Communications Group Incorporated Company to Report Fiscal Year 2024 Results on Mar 29, 2025 Guangzhou Haige Communications Group Incorporated Company announced that they will report fiscal year 2024 results on Mar 29, 2025 Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥12.68, the stock trades at a forward P/E ratio of 34x. Average forward P/E is 32x in the Communications industry in China. Total returns to shareholders of 36% over the past three years. Reported Earnings • Oct 29
Third quarter 2024 earnings released: CN¥0.004 loss per share (vs CN¥0.021 profit in 3Q 2023) Third quarter 2024 results: CN¥0.004 loss per share (down from CN¥0.021 profit in 3Q 2023). Revenue: CN¥1.18b (up 1.5% from 3Q 2023). Net loss: CN¥10.9m (down 123% from profit in 3Q 2023). Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Sep 30
Guangzhou Haige Communications Group Incorporated Company to Report Q3, 2024 Results on Oct 29, 2024 Guangzhou Haige Communications Group Incorporated Company announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to CN¥10.62, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 24x in the Communications industry in China. Total returns to shareholders of 8.6% over the past three years. Reported Earnings • Aug 26
Second quarter 2024 earnings released: EPS: CN¥0.055 (vs CN¥0.12 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.055 (down from CN¥0.12 in 2Q 2023). Revenue: CN¥1.45b (down 22% from 2Q 2023). Net income: CN¥153.3m (down 43% from 2Q 2023). Profit margin: 11% (down from 15% in 2Q 2023). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. Announcement • Jun 29
Guangzhou Haige Communications Group Incorporated Company to Report First Half, 2024 Results on Aug 24, 2024 Guangzhou Haige Communications Group Incorporated Company announced that they will report first half, 2024 results on Aug 24, 2024 Announcement • May 25
Guangzhou Haige Communications Group Incorporated Company Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2023, Payable on 31 May 2024 Guangzhou Haige Communications Group Incorporated Company announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.50000000 for the year 2023, payable on 31 May 2024. Record date is 30 May 2024. Ex-date is 31 May 2024. New Risk • Mar 31
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 20% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Shareholders have been diluted in the past year (7.7% increase in shares outstanding). Announcement • Mar 30
Guangzhou Haige Communications Group Incorporated Company to Report Q1, 2024 Results on Apr 24, 2024 Guangzhou Haige Communications Group Incorporated Company announced that they will report Q1, 2024 results on Apr 24, 2024 Reported Earnings • Mar 30
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.30 (up from CN¥0.29 in FY 2022). Revenue: CN¥6.45b (up 15% from FY 2022). Net income: CN¥703.0m (up 5.2% from FY 2022). Profit margin: 11% (down from 12% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 3.8%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Announcement • Mar 29
Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 23, 2024 Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 23, 2024, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥8.78, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 20x in the Communications industry in China. Total returns to shareholders of 3.1% over the past three years. Announcement • Dec 30
Guangzhou Haige Communications Group Incorporated Company to Report Fiscal Year 2023 Results on Mar 29, 2024 Guangzhou Haige Communications Group Incorporated Company announced that they will report fiscal year 2023 results on Mar 29, 2024 Price Target Changed • Dec 16
Price target increased by 7.5% to CN¥13.17 Up from CN¥12.25, the current price target is an average from 4 analysts. New target price is 11% above last closing price of CN¥11.85. Stock is up 42% over the past year. The company is forecast to post earnings per share of CN¥0.32 for next year compared to CN¥0.29 last year. New Risk • Dec 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.6% average weekly change). Shareholders have been diluted in the past year (7.7% increase in shares outstanding). New Risk • Nov 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (6.4% average weekly change). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.021 (vs CN¥0.042 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.021 (down from CN¥0.042 in 3Q 2022). Revenue: CN¥1.16b (down 5.4% from 3Q 2022). Net income: CN¥47.2m (down 55% from 3Q 2022). Profit margin: 4.1% (down from 8.5% in 3Q 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Announcement • Oct 01
Guangzhou Haige Communications Group Incorporated Company to Report Q3, 2023 Results on Oct 19, 2023 Guangzhou Haige Communications Group Incorporated Company announced that they will report Q3, 2023 results on Oct 19, 2023 Price Target Changed • Aug 28
Price target increased by 9.0% to CN¥13.00 Up from CN¥11.93, the current price target is an average from 3 analysts. New target price is 33% above last closing price of CN¥9.81. Stock is up 13% over the past year. The company is forecast to post earnings per share of CN¥0.34 for next year compared to CN¥0.29 last year. Reported Earnings • Aug 25
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: CN¥0.13 (up from CN¥0.11 in 2Q 2022). Revenue: CN¥1.84b (up 19% from 2Q 2022). Net income: CN¥269.1m (up 12% from 2Q 2022). Profit margin: 15% (in line with 2Q 2022). Revenue exceeded analyst estimates by 33%. Earnings per share (EPS) also surpassed analyst estimates by 82%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • May 06
Guangzhou Haige Communications Group Incorporated Company Announces Final Profit Distribution Plan to Be Implemented on A Shares, Payable on 11 May 2023 Guangzhou Haige Communications Group Incorporated Company announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 1.50000000 for the year 2022, payable on 11 May 2023. Record date is 10 May 2023. Ex-date is 11 May 2023. Reported Earnings • Mar 27
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.29 (up from CN¥0.28 in FY 2021). Revenue: CN¥5.62b (up 2.6% from FY 2021). Net income: CN¥668.2m (up 2.2% from FY 2021). Profit margin: 12% (in line with FY 2021). Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 14%. Revenue is forecast to grow 17% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Dec 15
Guangzhou Haige Communications Group Incorporated Company Announces Directorate Appointments Guangzhou Haige Communications Group Incorporated Company Extraordinary General Meeting of 2022 held on 13 December 2022, approved Election and nomination of Huang Yuezhen, Yu Shaodong, Zhong Yong as non-independent directors and Election of Zhang Xiaoli as non-employee supervisors. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. Independent Director Xin Chun Li was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Oct 28
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.042 (down from CN¥0.046 in 3Q 2021). Revenue: CN¥1.22b (up 9.8% from 3Q 2021). Net income: CN¥103.8m (down 3.4% from 3Q 2021). Profit margin: 8.5% (down from 9.6% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 39%. Earnings per share (EPS) also missed analyst estimates by 73%. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Sep 04
Price target decreased to CN¥12.04 Down from CN¥13.93, the current price target is an average from 5 analysts. New target price is 33% above last closing price of CN¥9.05. Stock is down 18% over the past year. The company is forecast to post earnings per share of CN¥0.34 for next year compared to CN¥0.28 last year. Reported Earnings • Aug 29
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: CN¥0.11 (up from CN¥0.099 in 2Q 2021). Revenue: CN¥1.55b (down 1.4% from 2Q 2021). Net income: CN¥239.3m (up 5.7% from 2Q 2021). Profit margin: 16% (up from 14% in 2Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 10%. Earnings per share (EPS) exceeded analyst estimates by 16%. Over the next year, revenue is forecast to grow 23%, compared to a 33% growth forecast for the Communications industry in China. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 05
Upcoming dividend of CN¥0.15 per share Eligible shareholders must have bought the stock before 12 May 2022. Payment date: 12 May 2022. Payout ratio is a comfortable 46% but the company is paying out more than the cash it is generating. Trailing yield: 1.5%. Lower than top quartile of Chinese dividend payers (2.2%). Higher than average of industry peers (0.9%). Announcement • May 02
Guangzhou Haige Communications Group Incorporated Company Announces Final Cash Dividend on A Shares for the Year 2021, Payable on May 12, 2022 Guangzhou Haige Communications Group Incorporated Company announced final cash dividend on A shares (tax included) of CNY 1.500000 per shares for the year 2021. Record date is May 11, 2022. Ex-date is May 12, 2022. The dividend will be payable on May 12, 2022. Board Change • Apr 27
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Xin Chun Li was the last director to join the board, commencing their role in 2019. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 23
Guangzhou Haige Communications Group Incorporated Company Approves Cash Dividend for 2021 Guangzhou Haige Communications Group Incorporated Company announced that at its AGM held on 21 April 2022, the shareholders approved profit distribution for 2021 as cash dividend/10 shares (tax included): CNY 1.50000000. Major Estimate Revision • Apr 01
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥6.88b to CN¥6.33b. EPS estimate also fell from CN¥0.40 per share to CN¥0.35 per share. Net income forecast to grow 23% next year vs 45% growth forecast for Communications industry in China. Consensus price target down from CN¥13.93 to CN¥13.13. Share price was steady at CN¥10.09 over the past week. Announcement • Mar 31
Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 21, 2022 Guangzhou Haige Communications Group Incorporated Company, Annual General Meeting, Apr 21, 2022, at 14:30 China Standard Time. Agenda: To consider 2021 work report of the board of directors;to consider 2021 work report of the supervisory committee;to consider2021 annual accounts;to consider2021 profit distribution plan;to consider2021 annual report and its summary;to consider Reappointment of 2022 audit firm;to consider Investment in short-term low-risk wealth management products with idle proprietary funds;and to consider2022 application for comprehensive credit line to banks. Reported Earnings • Mar 30
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.28 (up from CN¥0.25 in FY 2020). Revenue: CN¥5.47b (up 6.9% from FY 2020). Net income: CN¥653.6m (up 12% from FY 2020). Profit margin: 12% (in line with FY 2020). Revenue missed analyst estimates by 7.5%. Earnings per share (EPS) also missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 13%, compared to a 32% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Mar 29
Guangzhou Haige Communications Group Incorporated Company Proposes Final Cash Dividend for the Year 2021 Guangzhou Haige Communications Group Incorporated Company proposed final cash dividend/10 shares (tax included) of CNY 1.50000000 for the year 2021. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 19% share price gain to CN¥10.10, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 26x in the Communications industry in China. Total returns to shareholders of 9.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥6.58 per share. Price Target Changed • Jan 18
Price target increased to CN¥14.17 Up from CN¥12.81, the current price target is an average from 5 analysts. New target price is 38% above last closing price of CN¥10.25. Stock is down 6.1% over the past year. The company is forecast to post earnings per share of CN¥0.32 for next year compared to CN¥0.25 last year. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS CN¥0.046 (vs CN¥0.05 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥1.11b (up 12% from 3Q 2020). Net income: CN¥107.4m (down 8.2% from 3Q 2020). Profit margin: 9.6% (down from 12% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS CN¥0.10 (vs CN¥0.11 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: CN¥1.57b (up 19% from 2Q 2020). Net income: CN¥226.4m (up 24% from 2Q 2020). Profit margin: 14% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • May 27
Guangzhou Haige Communications Group Incorporated Company (SZSE:002465) agreed to acquire 11.4% stake in Changsha Haige Beidou Information Technology Co., Ltd from Guangzhou Radio and Television Research Institute Co., Ltd. for CNY 78.3 million. Guangzhou Haige Communications Group Incorporated Company (SZSE:002465) agreed to acquire 11.4% stake in Changsha Haige Beidou Information Technology Co., Ltd from Guangzhou Radio and Television Research Institute Co., Ltd. for CNY 78.3 million on May 24, 2021. Post completion, The Guangzhou Haige Communications Group Incorporated Company will hold 34.0543% and Guangzhou Radio and Television Research Institute Co., Ltd. will hold 11.4989%. As on March 31, 2021, Changsha Haige Beidou Information Technology Co., Ltd reported total assets of CNY 400 million, Net assets of CNY 352 million, Revenue of CNY 5.2 million and Net profit of CNY- 4.07 millions. Transaction is approved by the Board of Guangzhou Haige Communications Group Incorporated Company. Announcement • May 18
Guangzhou Haige Communications Group Incorporated Company Announces 2020 Final Profit Distribution Plan to Be Implemented (A Shares), Payable on 24 May 2021 Guangzhou Haige Communications Group Incorporated Company announced 2020 final profit distribution plan to be implemented (A shares) of CNY 1.32000000 per 10 shares (tax included), with Record date: 21 May 2021; Ex-date: 24 May 2021 and Payment date: 24 May 2021. Reported Earnings • Apr 25
First quarter 2021 earnings released: EPS CN¥0.02 (vs CN¥0.01 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥872.3m (up 11% from 1Q 2020). Net income: CN¥48.3m (up 53% from 1Q 2020). Profit margin: 5.5% (up from 4.0% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 25
Full year 2020 earnings released: EPS CN¥0.25 (vs CN¥0.23 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥5.12b (up 11% from FY 2019). Net income: CN¥585.6m (up 13% from FY 2019). Profit margin: 11% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 06
Full year 2020 earnings released: EPS CN¥0.25 (vs CN¥0.23 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: CN¥5.13b (up 11% from FY 2019). Net income: CN¥584.5m (up 13% from FY 2019). Profit margin: 11% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 18
Guangzhou Haige Communications Group Incorporated Company to Report Fiscal Year 2020 Results on Mar 20, 2021 Guangzhou Haige Communications Group Incorporated Company announced that they will report fiscal year 2020 results on Mar 20, 2021 Is New 90 Day High Low • Jan 25
New 90-day low: CN¥10.24 The company is down 12% from its price of CN¥11.61 on 27 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥9.55 per share. Is New 90 Day High Low • Dec 16
New 90-day low: CN¥10.71 The company is down 12% from its price of CN¥12.14 on 17 September 2020. The Chinese market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥9.62 per share. Analyst Estimate Surprise Post Earnings • Oct 30
Semi-annual earnings released: Earnings in line with expectations Earnings per share (EPS) were mostly in line with analyst estimates at CN¥0.05. Revenue is forecast to grow 28% over the next year, compared to a 29% growth forecast for the Communications industry in China. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥539.1m, up 11% from the prior year. Total revenue was CN¥4.86b over the last 12 months, up 12% from the prior year. Is New 90 Day High Low • Oct 28
New 90-day low: CN¥11.26 The company is down 23% from its price of CN¥14.60 on 30 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.69 per share. Is New 90 Day High Low • Sep 28
New 90-day low: CN¥11.50 The company is down 11% from its price of CN¥12.94 on 30 June 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥2.75 per share.